891.51/582: Telegram

The Minister in Iran (Dreyfus) to the Secretary of State

770. Millspaugh furnishes following replies to numbered paragraphs of Department’s 357, July 22.

1.
It is again confirmed that in event of a dollar loan being obtained proceeds would be used for issuing rial currency.
2.
Yes.
3.
Reserve against notes issued since November 19, 1942 is 100 percent in gold and/or dollars or sterling. No change in this reserve requirement is contemplated.
4.
Yes. Bank is required to maintain 40% ratio between liquid assets (in the form of rial notes, gold, silver, free foreign currencies or 15 days’ bills) and immediate liabilities.
5.
No.
Dreyfus